The average first home buyer deposit in Australia now tops almost $119,000 – more than the average full-time salary of $94,000. On these numbers, it would take someone 12 years to save up that amount of cash, considering potential interest earned at an average rate of 2.7 per cent.
But can investing your savings help build your deposit faster?
Building a home deposit can be a long grind.Credit: Matt Davidson
Richard Whitten, home loans expert at Finder, says saving for a house deposit is tough given that cost-of-living pressures has forced Aussies to cut back on the amount they save from their pay cheque each week.
“Rising costs and skyrocketing interest rates will see plenty of Australians priced out of the market without financial assistance – a worry felt by thousands of house hunters across the country,” he says.
He urged prospective first home buyers to supercharge their savings. If you qualify for a first home owner grant, this can form part of your deposit. “With millions of first home buyers going it alone, they need every trick in the book to save up a home deposit faster,” he says.
Investing can be inherently risky. That being said, here are some investment options to consider.
Using super contributions. The First Home Super Saver scheme enables eligible buyers to withdraw voluntary super contributions to use towards a home deposit.
Changes are being made to the scheme. From September, first home buyers can have some of their voluntary contributions released to help purchase a new or existing home.
Six ways to help build a home deposit faster
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19.03.2024
The average first home buyer deposit in Australia now tops almost $119,000 – more than the average full-time salary of $94,000. On these numbers, it would take someone 12 years to save up that amount of cash, considering potential interest earned at an average rate of 2.7 per cent.
But can investing your savings help build your deposit faster?
Building a home deposit can be a long........
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